If you're a Colorado
resident and you plan on buying a vehicle out of state, you’ll need to register the car in Colorado and pay the Colorado vehicle sales tax. You must also turn in the old title to get one from Colorado. 
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers How to buy a car out of state as a Colorado resident
If you purchase a vehicle out of state, you’ll need to complete some paperwork to register your vehicle with your home state of Colorado. Let’s look at everything you need to do to set up your new ride.
Be aware that you’ll have paperwork to complete, plus you’ll need to pay fees, including state sales tax. You have to register your vehicle within 60 days of the purchase. You want to have the right paperwork before making a trip to the DMV. Depending on whether you purchased your car from a dealer or an independent seller, you might be able to get a head start on the forms.
You’ll need to have multiple items ready when you register your out-of-state car:
Out-of-state registration
Vehicle Identification Number (VIN) inspection. This inspection can be done by a Colorado-licensed dealer or emission station, as well as a Colorado law enforcement officer
A bill of sale for sales tax purposes
A way to pay the registration and title fees (the amount is based on factors such as the weight and age of the vehicle)
Record of the loan agreement if the vehicle has a lien
Manufacturer's Statement of Origin (if being titled for the first time)
Proof of Colorado Vehicle Emissions (if gasoline or diesel-powered)
You’ll have to go to your local DMV to complete the process. Some steps, such as getting an emissions inspection, should be completed ahead of time—just be sure you keep track of the inspection paperwork!
Once everything is completed, you will get your title in four to six weeks. Be aware that the title is sent to the lienholder if the vehicle was purchased with a loan.
Key Takeaway: Keep track of all the paperwork you get when you buy your vehicle out of state because you’ll need it for switching everything over to Colorado.
MORE: Colorado car sales tax
How to buy a car in Colorado if you live out of state
Be aware that Colorado expects you to check on your vehicle's legal status and history before you make the purchase. It’s up to the buyer to look up the car in several databases:
Checking on the car’s status is especially important if you buy it from an individual, but you can also use these tools for a dealership.
Once you double-check the status of your future vehicle, you need to get a temporary Colorado permit with the local DMV before you drive it home—the seller is required to remove the original plates, so you won’t have access to the old plates once the car is handed over to you. If it’s from a dealership, they should provide you with a temporary permit.
You need to get some paperwork from the seller as well:
The original Colorado Certificate of Title
Emissions inspection certificate—for buyers who live in an emissions location
Bill of sale, which should include the vehicle’s year, make, VIN, time/date of purchase, signatures from buyer and seller
An odometer disclosure reading and indicator information on the Certificate of Title or DR2173 Motor Vehicle Bill of Sale form
Rebuilt from Salvage Disclosure if applicable
You need to register the vehicle with your own state using the paperwork provided by the seller or dealership. Fortunately, Colorado won’t require you to pay sales tax on the vehicle as long as you use the car outside of Colorado. However, your state will probably add its own sales tax to the fees when you switch over the registration and title to that state.
What if I don’t have a physical title?
If you want a Colorado title, you need to surrender the previous state’s title, so you need a physical copy to transfer everything over. Most states require the seller to give the buyer the original title as part of the sale, but if you lose the document or did not get one, you’ll have to order a physical copy from that state’s DMV.
In Colorado, the title is sent to the lienholder, which can complicate things when you need a copy of the title. However, you can contact the lienholder for help if you need a title copy. You can also get a temporary registration that is good for up to 60 days from the DMV.
MORE: How to Get a Temporary License Plate in Colorado
Tips for buying a vehicle out of state
There are plenty of reasons to buy a car from out-of-state, but considering what a significant investment it can be, you want to be sure to do a couple of things:
Check the vehicle history report, especially if buying a used car. Sites like CARFAX
and the National Motor Vehicle Title Information System
can help with the process. Check to make sure the vehicle wasn’t in an accident or declared a loss before you buy it. Don’t forget the inspections. Colorado requires several inspections, including a smog test and a VIN inspection. You are responsible for getting the inspections completed.
Remember the sales tax—Colorado expects you to pay sales tax on the new vehicle, so keep the bill of sales on hand since you will need it for this purpose. If the other state had you pay sales tax, you might be able to get a credit toward the Colorado tax.
Make sure you have insurance ready to go. You are legally required to have insurance, so have the Colorado state minimum requirements
at least.
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